Honda has pulled the wraps off an updated Insight, which is due to go on sale early next year.

Improvements to the CVT gearbox, better aerodynamics and a more efficient air-conditioning system have all helped to drop CO2 emissions below 100g/km.

This means the Insight will now fall into the lowest VED tax band, so owners won't pay road tax. It also makes this is only new Honda that's exempt from the London Congestion Charge.

Other changes include a new front grille, and a slimmer rear spoiler that will improve visibility, says Honda.

Honda also claims that adjustments to the car's suspension will improve the ride, while interior quality has been improved, with plusher materials and more metallic trim. Even so, there's still lots of hard plastic on and around the dash.

There's no official word on prices yet, but we're not expecting much of an increase from the current starting price of £16,895.